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Becoming a Master Manager, 5th edition Test Bank

Module 2:

Establishing and Maintaining Stability and Continuity

Multiple Choice Questions


[Note: Some of the questions in this first overarching set require students to recall material

presented in the introductory chapter of the text, The Competing Values Approach to

Management, pp. 1-35.]

1. The action imperative associated with the internal process model is

a. Compete

b. Control

c. Create

d. Collaborate

e. Conform

Ans: B

Response: See page 108

Level: Easy

2. The action imperative that appears diagonally opposite of the internal process model quadrant

in the competing values framework is

a. Compete

b. Control

c. Create

d. Collaborate

e. Conform

Ans: C

Response: See page 108 (shown in module graphic)

Level: Medium

3. The management model that appears diagonally opposite of the internal process model

quadrant in the competing values framework is

Becoming a Master Manager, 5th ed. Test Bank

Module 2: Control – Stability and Continuity

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a. The rational goal model

b. The bureaucratic model

c. The open systems model

d. The human relations model

e. The Theory X model

Ans: C

Response: See page 13 (refers back to Introduction of the CVF)

Level: Easy

4. What are three competencies typically associated with the internal process model?

a. Managing projects, managing across functions, mentoring and developing others

b. Monitoring individual performance, encouraging compliance, organizing

information flows

c. Developing and communicating a vision, setting goals and objectives, designing

and organizing

d. Developing new ideas for projects, managing supplier relationships,

communicating effectively

e. Building and maintaining a power base, negotiating agreement and commitment,

presenting ideas

Ans: B


Level: Medium

5. What do the competencies associated with the internal process model typically focus on?

a. Having a caring empathetic orientation, exhibiting helpful, considerate,

sensitive, approachable, open, and fair behaviors.

b. Encouraging collective effort, building cohesion and morale, and managing

interpersonal conflict.

c. Creating continuity and stability, making sure that information flows

smoothly, ensuring that the necessary resources are available for activities

d. Establishing a clear direction for the organization, providing guidance so

individuals can help the organization achieve its goals

e. Reducing friction among individuals, work groups, and work units.

Ans: C


Level: Easy



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6. The effectiveness criteria associated with the internal process model is

a. Adaptability and external support

b. Stability and continuity

c. Commitment, cohesion, and morale

d. Growth and change

e. Productivity and profit

Ans: B


Level: Easy

7. The means-ends theory associated with the internal process model is

a. Routinization leads to stability

b. Involvement results in commitment

c. Continual adaptation and innovation lead to acquiring and maintaining external resources

d. Clear direction leads to productive outcomes

e. Cost control leads to growth

Ans: A


Level: Easy

8. The internal process model emphasizes _____________ while the human relations quadrant

emphasizes ________________.

a. Participation, conflict resolution, and consensus building;

Goal clarification, rational analysis, and action taking

b. Goal clarification, rational analysis, and action taking;

Political adaptation, creative problem solving, innovation, and change management

c. Defining responsibility, measurement, and documentation;

Political adaptation, creative problem solving, innovation, and change management

d. Political adaptation, creative problem solving, innovation, and change management;

Participation, conflict resolution, and consensus building

e. Defining responsibility, measurement, and documentation;

Participation, conflict resolution, and consensus building

Ans: E

Response: See page 108 (student should also recall material from introduction and Module 1)

Level: Medium



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9. Consistent with a hierarchical culture and Weber’s ideas about bureaucracy, the internal

process model focuses on measuring and documenting performance as the basis for

_______________ rather than on ______________.

a. Promotions; seniority

b. Promotions; personal relationships

c. Team assignments, credentials such as academic degrees or certifications

d. All of the above

e. None of the above

Ans: D


Level: Difficult

10. Which of the following is NOT a key paradox that managers often face when they try to

maintain tight controls in the organization?

a. Leaders who exert tight controls are often more effective at higher levels of the

organization than at lower levels.

b. Tight controls and rules to improve organizational effectiveness can become impediments

to individual performance.

c. By stifling creativity, tight controls can result in lower profits which then reduces that

ability of the organization to survive

d. Employees who are frustrated by tight controls may choose to leave the organization,

reducing stability

e. Tight controls can make it difficult to serve customers efficiently because requests must

be passed up the chain of command

Ans: A

Response: See pages 108-109

Level: Medium

Module 2, Competency 1: Organizing Information Flows

11. What is the major information problem confronting managers?

a. Information coming in too slowly

b. Information scarcity

c. Information coming in too fast

d. Too much irrelevant information

e. Not enough information to make decisions

Ans: D


Level: Medium



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12. Which of the following is true about data and information?

a. Information necessarily includes data, but data may not provide information.

b. Data reduces uncertainty, but information does not reduce uncertainty.

c. Managers have too little data and too much information.

d. Unlike information, data can be represented numerically or graphically, but not verbally.

e. Unlike data, information can be represented numerically or graphically, but not verbally.

Ans: A


Level: Medium

13. What does TRAF stand for in reference to managing information overload?

a. Toss, refer, act, file

b. Touch, react, answer, finish

c. Toss, refer, answer, finish

d. Touch, reference, act, file

e. Teach, repeat, answer, and file

Ans: A


Level: Easy

14. What should you do with papers that require your personal action according to the TRAF

system?

a. Throw them away

b. Forward them to people who should act upon them

c. Put them into an action box or folder

d. Put them into a box labeled “file”

e. File them in the appropriate filing cabinet

Ans: C


Level: Easy

15. In addition to the increased amount of information that managers receive today, what else has

increased the problem of information overload for managers?

a. Increasing diversity in the workplace



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b. Increasing globalization

c. The elimination of traditional communication systems as new forms of communication

are implemented.

d. Decreasing attention spans.

e. The elimination of assistants for many managerial positions

Ans: E


Level: Medium

16. According to personal efficiency expert Stephanie Winston, when reading a document takes

more than five minutes, a manager should

a. Toss the document

b. Ask someone else to read and summarize the document

c. File the document for future reference

d. Put the papers into an action folder to be addressed in the near future

e. Read the document and then take the necessary follow-up action

Ans: D,


Level: Medium

17. When prioritizing tasks, what two characteristics are important for you to identify according

to Steven Covey?

a. Whether the task is internally- or externally-focused and how urgent the task is

b. How important the task is and whether someone else is available to complete the task

c. How urgent it is to act on the task and how important the task is

d. How urgent the task is and whether someone else is available to complete the task

e. How long the task will take to complete and how important the task is

Ans: C


Level: Easy

18. When using the Time Management Matrix for prioritizing tasks, which types of tasks should

be assigned the important but not urgent category?

a. Tasks focused on pressing problems, deadline-driven tasks, and crises

b. Tasks focused on preventing future problems, recognizing new opportunities, building

relationships, and improving production capability



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c. Tasks that require reading such as checking email, analyzing reports, and preparing for

presentations

d. Tasks that require writing, such as preparing reports and responding to written requests

e. Tasks that require working with others such as meetings, telephone calls, and

presentations

Ans: B


Level: Medium

19. Which one of the paradoxes below is associated with information overload?

a. People don’t want to be overwhelmed with unnecessary information and don’t want to

receive unsolicited emails.

b. People don’t want to participate in meetings and don’t want to be overwhelmed with

unnecessary information.

c. People want to be informed about what is happening in the organization and want to have

access to multiple sources of information.

d. People don’t want to be overwhelmed with unnecessary information and don’t want to be

uninformed about what is happening in the organization.

e. People want to use only one method of communication and want to be connected to

everyone in the organization.

Ans: D


Level: Medium

20. When considering whether or not to forward an email to someone, what should be your

primary consideration?

a. How forwarding the email will make you look to others

b. How frequently you see the recipient

c. How frequently the recipient forwards messages to you

d. Whether the recipient is likely to respond to you in a timely fashion

e. What the recipient will do with the email when they receive it.

Ans: E


Level: Easy

21. Which of the following is NOT a component of the OABC method for composing email

messages



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a. Opening

b. Audience set

c. Body

d. Closing

e. Agenda

Ans: B


Level: Easy

22. Which component of the OABC method for composing email is described as an outline or

map of what your message is about?

a. Agenda

b. Action Items

c. Audience set

d. Body

e. Opening

Ans: A


Level: Easy

23. Which component of the OABC method for composing email is described as the “business”

message itself, expressed in concrete and simple terms?

a. Agenda

b. Action items

c. Audience set

d. Body

e. Opening

Ans: D


Level: Easy

24. When leaving a voice mail, why is it helpful to give your name at the beginning of the

message rather than at the end (as is more common with written messages)?

a. Because you may forget to leave your name at the end of your message

b. Because a letter is a less formal communication medium

c. Because it quickly puts your message in context for your listener

d. Because it helps the listener prioritize your call.



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e. Because it lets your listener know that an important person is calling

Ans: C


Level: Medium

25. Which of the following is TRUE about face-to-face communication?

a. Video-conferencing can replace all aspects of face-to-face communication.

b. Face to face meetings are still necessary

c. Teams perform just as well whether or not they ever have any face-to-face meetings.

d. If they are limited in the number times they can meet face to face, teams should save face

to face meetings for the end of the project.

e. It is easier to convey difficult emotions with email than with face-to-face communication.

Ans: B


Level: Medium

26. What is the most important reason to know your audience when deciding how to

communicate with a particular individual?

a. Different people are more receptive and responsive to different types of communication

b. Some people rarely check their email

c. Some people never delete old voice mails

d. Some people save all their emails which might cause problems later if anyone questions

your judgment about a decision

e. New technologies are harder to use for older employees

Ans: A


Level: Medium

27. When used in a “chat” message, what does the abbreviation “O” mean.

a. Over and out

b. Opponent in a gambling match

c. Hugs from the sender

d. All of the above

e. It is not possible to say without knowing the context of the message

Ans: E




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Level: Easy

28. What is the Human Moment?

a. Encounters in which people are physically in the same room or place and focus their

emotional and mental attention

b. Group of members who are geographically dispersed meet via video conferencing

c. When managers keep in close contact with their employees via email, voicemail, and

video conferencing

d. When team members share stories about their lives outside of work.

e. All of the above are example of human moments.

Ans: A


Level: Easy

Module 2, Competency 2: Working and Managing Across Functions

29. At the beginning of the competency, “Working and Managing Across Functions,” you were

asked to complete an assessment related to “mapping your organization” that asked you to

obtain a copy of the organizational chart for your employer or school. What information can

be found on an organizational chart?

a. Information about formal reporting relationships between people in the organizations

b. Information about where decisions are made in the organization

c. Information about how long it takes for decisions to be made in the organization

d. Information about formal reporting relationships between positions in the organization

e. Information about informal reporting relationships among employees in the organization

Ans: D

Response: See page 121; note: Some students may argue that A is also correct; remind them that

the organizational chart is about positions, not people.

Level: Difficult

30. Which of the following describes cross-functional teams?

a. They are made up of specialists from different functional areas.

b. They have responsibility for managing the work process, purchasing, handling quality

issues, and hiring and firing members.

c. They are made up of specialists from across a single functional area.

d. All of the above describe cross-functional teams.

e. None of the above describe cross-functional teams.



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Ans: A


Level: Medium

31. Cross-functional teams were first encouraged as a way to help U.S. companies be more

successful in the global economy more than 20 years ago. Since that time, which of the

following best describes what researchers have learned about cross-functional teams?

a. Cross functional teams are almost always beneficial because by increasing the amount of

functional diversity on the team, better solutions can be obtained.

b. Cross functional teams are most beneficial when external communication increases as a

result of having members with diverse backgrounds, areas of expertise, and different

external networks of information.

c. Cross functional teams are least beneficial when external communication increases

because this distracts members from the primary task of the team.

d. Cross functional teams were common in the 1990s but their use in organization has fallen

as organizations realized that they were not a panacea.

e. Cross-functional teams are rarely beneficial because the diversity of functional

backgrounds and expertise makes it difficult for members to communicate effectively and

increases conflict.

Ans: B


Level: Medium

32. Cross-functional teams have become more popular over time because

a. New technologies allow work to be done around the globe more economically

b. Changes in the external environment require that different types of expertise at different

times, so it is important to use cross-functional teams that can be formed and disbanded

rapidly, rather than creating ongoing workgroups.

c. Integration and coordination is needed throughout the organization, which is facilitated

by having team members from different functional areas

d. All of the above.

e. None of the above.

Ans: D


Level: Easy

33. Consistent with the principles of Adam Smith and Henri Fayol, differentiation has

traditionally been accomplished by



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a. Paying individuals different amounts based on their expertise

b. Creating specialized jobs and work units that are then organized hierarchically

c. Hiring individuals who have a variety of different backgrounds

d. Increasing the efficiency of work processes

e. Subordinating individual interests to the interests of the organization

Ans: B


Level: Easy

34. The primary goal of differentiation, according to Adam Smith is to

a. Increase efficiency

b. Encourage diversity in hiring

c. Make work more interesting for employees

d. Give managers an opportunity to learn new things

e. Ensure that the organization has sufficient numbers of qualified workers

Ans: A


Level: Easy

35. How is integration primarily accomplished in an organization that is organized into different

functional units?

a. With regular inspections by managers of employee work habits.

b. With formal cross-functional teams and liaison officers

c. With informal relationships among organizational members

d. With standardized processes and procedures that are inherent in the organizational

hierarchy.

e. Integration is not needed in companies organized by functional units

Ans: D


Level: Difficult

36. Several paradoxes result when using cross-functional teams. One key paradox that is likely to

have a major impact on employee motivation is that organizations need to

a. Ensure that employees are creative and are still working within organizational guidelines.

b. Evaluate and reward individual performance when much of the work of the organization

is being done in teams



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c. Achieve multiple focuses (on product, market, customer, geography, etc.) without

segmenting the organization in a dysfunctional way.

d. All of the above are paradoxes that relate to the use of cross-functional teams.

e. None of the above are paradoxes that relate to the use of cross-functional teams.

Ans: B


Level: Medium

37. The decision to use cross functional teams as a way to provide the integration needed in

differentiated organizations is

a. One of the oldest approaches used by organizations

b. A new approach, so we know little about how well it will work

c. Supported by management theory but challenging to implement in practice

d. Easy to implement in practice but not supported by management theory

e. Not really appropriate.

Ans: C


Level: Easy

38. Which of the following is a guideline for managing cross-functional teams?

a. Clarify goals and charter and get team buy-in.

b. Change individual members frequently to bring fresh ideas into the team.

c. Keep the group as large as possible.

d. Provide the group with information only as necessary.

e. Use an accommodating approach to conflict within the team.

Ans: A


Level: Easy

39. All of the following are guidelines for managing cross–functional teams EXCEPT?

a. Seek to create a critical mass of leadership.

b. Train members in teamwork and process management.

c. Encourage team members to stay within their functional roles.

d. Clarify expectations within and between teams.

e. Get early involvement from all functional areas.

Ans: C



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Level: Medium

40. How do you determine the appropriate size for a cross-functional team?

a. Make sure to have one person from each functional unit.

b. Make sure you have a diverse number of perspectives.

c. Keep the team as small as possible with critical functional representation.

d. Make sure all powerful people are members.

e. Keep the team to fewer than eight members.

Ans: C


Level: Medium

41. In identifying the right members for a cross-functional team, research by Baker, Cross, and

Wooten found that in addition to having members with the appropriate technical and

interpersonal skills, it was also helpful to have members who

a. Were relatively new to the organization

b. Had extensive experience in the organization

c. Had experience working on cross-functional teams

d. Had little experience working on cross functional teams

e. Were enthusiastic and optimistic and could “charge up” everyone around them

Ans: E


Level: Medium

42. The concept of “lift” as proposed by Quinn and Quinn (2009) includes four key thoughts and

feelings that cause people to be uplifted and to lift up people around them. Which of the

following is NOT one of the four key elements of lift?

a. Being purpose-centered

b. Being other-focused

c. Being internally directed

d. Being highly creative

e. Being externally open

Ans: D


Level: Easy



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Module 2, Competency 3: Planning and Coordinating Projects

43. Why are project teams becoming more popular?

a. They are task focused

b. They enable companies to use cross-functional teams

c. They are flexible and able to react quickly to change.

d. All of the above are reasons project teams have become popular

e. None of the above are reasons project teams have become popular

Ans: D


Level: Easy

43. Which of the following is a characteristic of a project?

a. It has a very general objective

b. It has no clear start and end dates

c. It has unlimited funding

d. It consumes resources

e. It is a repetitive endeavor of the organization

Ans: D


Level: Easy

44. As organizations have moved to more project-based activities, research on effective project

management has become more important. What do project management experts like Harold

Kerzner suggest should be the first step in project management?

a. Planning defining the work requirements, scheduling activities, and evaluating risks

b. Closure – verifying that all work has been completed and all paperwork is done

c. Initiation – selecting the best project given limited resources and preparing documents to

sanction the project

d. Monitoring – tracking progress and comparing actual outcomes to predicted outcomes so

that adjustments can be made

e. Execution – negotiating to get the right members for the project team, directing and

managing work, and helping team members improve

Ans: C


Level: Easy



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45. What project management tool shows the total project divided into components that can be

measured in terms of time and cost?

a. Statement of work

b. Work breakdown structure

c. Program evaluation and review technique

d. Critical Path Method

e. Human resource matrix

Ans: B


Level: Easy

46. Which project management tool shows the flow of tasks associated with a complex project

by showing the interrelationships between activities?

a. Work breakdown structure

b. PERT/CPM

c. Gantt Chart

d. All of the above


Ans: B


Level: Easy

47. What is the critical path in a PERT/CPM diagram?

a. The chain of activities that takes the longest time to proceed through the network

b. The chain of activities that contains the greatest amount of slack

c. The chain of activities that contains the largest number of nodes

d. The chain of activities with the earliest finish time

e. The chain of activities with the fewest nodes

Ans: A


Level: Medium

48. Project managers are tasked with achieving project objectives while using resources in the

most efficient way possible. One process that helps them accomplish these two potentially

conflicting goals is



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a. Human resource matrix management

b. Zero-based budgeting

c. PERT/CPM

d. Enterprise Project Management

e. Resource leveling

Ans: E


Level: Medium

49. What project management tool is most popular for visually displaying scheduled activities

and showing the dates on which the various project activities are expected to begin and end?


b. PERT/CPM

c. Gantt chart

d. Human resource matrix

e. Costed statement of work

Ans: C


Level: Easy

50. Which project management tool identifies who is assigned to tasks and what role each

individuals has (primary, secondary, consultant) on each task?


b. PERT/CPM

c. Gantt Chart

d. Human resource matrix

e. Tabular work breakdown structure

Ans: D


Level: Easy

51. Which resource needs to be monitored during a project?

a. Time

b. People

c. Money

d. All of the above




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Ans: D


Level: Easy

52. When examining a project budget, what is a cost variance?

a. The budgeted cost of work performed (BCWP) during a specific time period

b. The actual cost of work performed (ACWP) during a specific time period

c. The difference between budgeted cost of work performed and actual cost of that work

when it is performed (BCWP-ACWP)

d. The average of the budgeted cost of work performed and actual cost of work performed


Ans: C


Level: Medium

53. What is a schedule variance?

a. The budgeted cost of work performed during a specific time period (BCWP)

b. The budgeted cost of work scheduled during a specific time period (BCWS)

c. The difference between the budged cost of work performed and the budget cost of work

scheduled for a specific time period (BCWP-BCWS)

d. The amount of time by which a project is behind schedule when no slack exists in the

schedule budget

e. The difference between the money spent and the money projected to be spent on a project

Ans: C


Level: Medium

54. Many different computer software programs are available to help with project management.

As a result…

a. It is no longer necessary to learn the fundamental concepts upon which those programs

are based and work through examples by hand.

b. Managers who understand the fundamental concepts upon which these programs are

based are able to be more efficient and effective at project management.

c. Project management is no longer an important aspect of managers’ jobs.

d. Managers can be confident that the reports they generate from these software programs

will meet all of their needs.

e. Anyone who can use the software can be a successful project manager.



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Ans: B


Level: Easy

Module 2, Competency 4: Measuring and Monitoring Performance

and Quality

55. Although measuring and monitoring performance is crucial to organizational efficiency,

organizations do not always measure things that are relevant to efficiency. In some cases,

these decisions are appropriate, but often they are not. Under what conditions is it

APPROPRIATE to select measures that are NOT relevant to efficiency

a. When the organization is focusing on objective criteria

b. When the organization is measuring highly visible behaviors

c. When the organization is emphasizing other goals

d. A and B but not C

e. A and C but not B

Ans: C


Level: Medium

56. The global financial crisis that began in mid-2007 resulted in part because of a failure to

adequately measure what key variables?

a. The ability of borrowers to repay loans and the repayment history of loans originated by

individuals

b. The ability of borrowers to repay loans and the willingness of the FDIC to cover bad

bank loans

c. The repayment history of loans originated by individuals and the willingness of the FDIC

to cover bad bank loans

d. The strength of the housing market and number of new loans being originated

e. The number of new loans being originated and the commissions being paid to loan

originators

Ans: A


Level: Difficult

57. Because it is often very difficult and costly to measure the variables that are most closely

linked with critical outcomes, organizations often ….



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a. Substitute qualitative measures for quantitative measures of achievement

b. Substitute surrogate or proxy measures for exact measures of achievement.

c. Substitute complete measures for objective measures of achievement

d. Substitute complete measures for responsive measures of achievement

e. Substitute responsive measures for exact measures of achievement

Ans: B


Level: Medium

58. In deciding on performance measures, organizations need to consider which of the

following?

a. The objectivity of the measure

b. The completeness of the measure

c. The responsiveness of the measure

d. All of the above


Ans: D


Level: Easy

59. Proxy measures of outcomes are used

a. To allow independent verification

b. To obtain a complete understanding of outcomes

c. To make inferences about exact measures

d. To provide for responsiveness

e. To eliminate subjectivity

Ans: C


Level: Easy

60. The quality of many types of services cannot be accurately measured when the service is

delivered. Which of the following measures would be the BEST for evaluating the quality of

cardiac surgery?

a. Time spent on the surgery

b. Credentials of the doctor performing the surgery

c. Time spent in the hospital after the surgery

d. Number of follow-up visits to the doctor after surgery



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e. Readmissions to the hospital cardiac unit within six weeks of surgery

Ans: E


Level: Medium

61. Kaplan and Norton’s “balanced scorecard” includes measures that can be related to three of

the four quadrants of the competing values framework. Which quadrant is NOT included in

the balanced scorecard?

a. Open systems

b. Rational goal

c. Internal process

d. Human relations

e. Contingency theory

Ans: E


Level: Easy

62. For stockholders, the best measure of financial organizational effectiveness is…

a. Sustainability

b. Earnings per share

c. Inventory turnover

d. Corporate reputation

e. Six sigma deviations

Ans: B


Level: Easy

63. What three areas are included in the “triple bottom” line approach to measuring

organizational performance?

a. Financial performance, environmental performance, and social/ethical performance

b. Environmental performance, social/ethical performance, and customer satisfaction

c. Financial performance, customer satisfaction, and environmental performance

d. Customer satisfaction, employee satisfaction, and community satisfaction

e. Financial performance, debt-to-equity ratios, and new product introductions

Ans: A




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Level: Medium

64. To encourage organizations to recognize the importance of corporate social responsibility,

what have organizations such as the United Nations Global Compact attempted to do?

a. Stop the spread of globalization to protect local economies

b. Encourage the adoption of U.S. Generally Accepted Accounting Principles (GAAP)

c. Establish more standardization for social and environmental reporting.

d. Create a network of organizations that serves to oversee company behavior

e. Offer incentives to organizations that report on their social and environmental impacts

Ans: C


Level: Medium

65. TQM stands for

a. Total quartile marketing

b. Testing quantities and methods

c. Total quality management

d. Testable quantitative management

e. Tested quality materials

Ans: C


Level: Easy

66. Methods for making performance improvements include which of the following?

a. TQM

b. The Baldrige Criteria

c. ISO 9000

d. All of the above


Ans: D


Level: Easy

Module 2, Competency 5: Encouraging and Enabling Compliance



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67. When they are trying to get employees to follow rules, managers…

a. Are unlikely to be successful unless they have the authority to fire employees who do not

comply

b. Are unlikely to be successful unless they have the authority to reward employees who do

comply

c. Have the same amount of influence over individual-level and situational variables

d. Have less influence over individual-level variables than over situational variables

e. Have more influence over individual-level variables than over situational variables

Ans: D


Level: Medium

68. Researchers have identified several different triggers that increase the likelihood that

employees will not comply with rules in the workplace. Which of the following is NOT a

common trigger for noncompliance?

a. A manager violating employee trust

b. A failure by the manager to trust his/her employees

c. Rules that are perceived as being unfair

d. Ambiguity about required job performance

e. Reward systems that provide incentives for compliance

Ans: E


Level: Easy

69. One of the benefits of aligning compensation and reward systems with the types of behaviors

desired by the organization is that this alignment…

a. Reduces the costs associated with noncompliance

b. Increases the likelihood that that employees will be compliant

c. Reduces the costs associated with compliance

d. Increases the likelihood that instances of noncompliance will be reported by employees

e. Reduces the opportunities for noncompliance

Ans: B


Level: Medium

70. When there is ambiguity about appropriate job performance, employees who do not comply

with organizational rules are most likely to claim that…



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a. The rules were unfair and therefore should not be followed

b. The rules were improper and following them would hurt the organization

c. The rules were unclear and therefore the employee is not really responsible

d. There was too much social pressure to permit the employee to follow the rules

e. The manager could not be trusted to treat the employee fairly

Ans: C


Level: Easy

71. An organization sends mixed messages about compliance when…

a. A rule exists but there are no consequences for failing to comply with that rule

b. A rule exists and there are negative consequences for noncompliance, but there are

policies in place that make it difficult for employees to follow the rule

c. A rule exists and noncompliance sometimes results in negative consequences

d. All of the above are examples of mixed messages

e. None of the above are examples of mixed messages

Ans: D


Level: Easy

72. Destructive deviance is most likely to occur in situations where employees feel that…

a. The organization had done something that justified retaliation by the employee

b. The organization had done nothing to earn the employee’s extra effort

c. The organization was involved in corrupt activities and should be exposed

d. The organization would be unlikely to discover the destructive deviance

e. The organization had been sending mixed messages

Ans: A


Level: Medium

73. The concept of positive deviance is used to refer to situations where…

a. There is no cost to the organization when an employee fails to comply with

organizational rules

b. There is no cost to the employee when he fails to comply with organizational rules

c. The situation in question makes not complying with organizational rules the most

ethically appropriate action

d. There is a short term benefit to individuals who do not comply with organizational rules



25

e. There is no alternative to not complying with organizational rules

Ans: C


Level: Medium

74. An organizations that tries to increase compliance with rules about conserving supplies by

locking the supply closet is using which compliance strategy?

a. Punitive – similar to threatening employees with sticks

b. Preventative – similar to putting hurdles up in front of employees

c. Remunerative – similar to tempting employees with carrots

d. Generative – similar to creating a fast track for employees to follow

e. Cognitive – similar to enlightening employees about the benefits of compliance

Ans: B


Level: Medium

75. An organization that gives employees a chance to win a gift certificate for a popular

restaurant every time they submit their expense report within a week of returning from a trip

is using which type of compliance strategy?






Ans: C


Level: Medium

76. An organization that refuses to reimburse employees for expenses unless their expense report

is submitted within a week of incurring the expenses is using which type of compliance

strategy?








26

Ans: A


Level: Medium

77. An organization that expands its policy to let employees submit their expense reports

electronically, as an alternative to completing a paper report, is using which type of

compliance strategy?






Ans: D


Level: Medium

78. When organizations want to make significant changes in employee behavior, it is often

necessary to alter…

a. Deeply held assumptions, beliefs, and values

b. Organizational rhetoric

c. Performance evaluation and reward systems

d. All of the above

e. A and C, but not B

Ans: D


Level: Medium

79. One of the key paradoxes of control in organizations is that …

a. Effective compliance programs include multiple types of strategies

b. Organizations that do not use any controls often outperform organizations that implement

controls

c. Tight control leads to higher profitability because of lower costs typically result when

tight controls are in place

d. Tight control helps employees feel comfortable by reducing ambiguity which in turn

reduces noncompliance with organizational rules

e. Trying to control employees too tightly can increase the likelihood that employees will

look for ways to avoid compliance



27

Ans: E


Level: Medium

80. In recent years, the term “compliance” has come to be associated with…

a. Obeying U.S. federal laws and regulations

b. Acting in a socially responsible way and being accountable for organizational activities

c. Conserving environmental resources and recycling waste

d. Engaging in philanthropy and corporate volunteerism

e. Obeying international laws and complying with international treaties

Ans: A


Level: Easy

81. U.S. federal sentencing guidelines for organizations apply to criminal conduct by…

a. Corporations

b. Partnerships

c. Non-profit organizations

d. Unions

e. All of the above

Ans: E


Level: Easy

82. U.S. federal sentencing guidelines for organizations do NOT apply to criminal conduct by…

a. Small corporations (under 50 employees)

b. Trusts

c. Chief executive officers

d. Pension funds

e. U.S. federal sentencing guidelines for organizations apply to all of the above

Ans: C


Level: Medium



28

83. In 2004, the U.S. federal sentencing guidelines for organizations were revised in an effort

to…

a. Reduce the costs of creating and maintaining compliance programs

b. Increase the accountability of boards of directors and top executives

c. Reduce punishments for companies with compliance programs

d. Provide subsidies for organizations to create compliance programs

e. Carve out special protections for banking and financial institutions

Ans: B


Level: Medium

84. The guidelines for compliance and ethics programs were designed to provide…

a. Flexibility and independence by organizations so their programs could be designed to suit

their particular circumstances

b. Rigid rules and procedures for organizations so programs would be designed consistently

and could be reviewed more easily

c. Precise details for implementation to save organizations time and money when

implementing compliance and ethics programs

d. Opportunities for individuals seeking careers in compliance and ethics to become

certified by the federal government

e. A clear set of steps organizations can follow to ensure that they will not be the victim of

criminal behavior by employees

Ans: A


Level: Medium



29

Module 2:


Essay Questions

M2 -1. What competencies does the internal process model emphasize? Why are these

competencies especially relevant to the internal process model? (Response: See

page109)

Sample Response: The competencies emphasized in the internal process model

include (1) organizing information flows, (2) working and managing across

functions, (3) planning and coordinating projects; (4) measuring and monitoring

performance and quality, and (5) encouraging and enabling compliance.

These competencies are particularly relevant to the internal process model

because the primary goal of that model is to establish and maintain stability and

continuity and the means-ends theory of the internal relations model assumes that

that routinization will result in stability. All five of these competencies are helpful

for creating consistency in organizational processes related to achieving

organizational goals.

The internal process model emphasizes the importance having strong

organizational and project management skills. The focus here is less on working

effectively with people (as in the human relations model) and more on creating

effective and efficient ways to accomplish tasks. Effective managers need to be

able to understand both the details and how those details fit into the big picture.

They also have to make sure that day-to-day work is accomplished at the same

time that special projects are underway. Another key issue for managers is

balancing the need for following existing rules and standards with the need for

establishing more effective rules and standards.

M2C1: Organizing Information Flows

M2C1 -1. Evaluate whether you suffer from information overload by examining five

(or specify a smaller number) symptoms discussed in the text and giving

specific examples from your life. (Response: See page111)

Note: Students should evaluate each of the symptoms identified in the text,

indicate the extent to which these symptoms apply to their lives, and provide some

conclusion about whether they suffer from information overload. The question

can be expanded by asking students to discuss why they are so overloaded with

information and/or how they can reduce the negative impact of information

overload.



30

Sample Response: Five symptoms of information overload are: 1. Chronically

talking about not keeping up with what’s going on around you. 2. Nodding your

head knowingly when someone mentions a book, artist, or news story with which

you are actually unfamiliar. 3. Assuming you must read every e-mail you receive,

regardless of who it is from. 4. Thinking that the person next to you understands

everything and you don’t. 5. Calling something that you don’t understand

“information.”

I seem to suffer from some, but not all of these symptoms. I do tend to talk about

not being able to keep up with the news and feel guilty about not reading the

newspaper on a more regular basis. I do read The Week, which helps with this

problem somewhat. I confess that I also sometimes pretend to know about

something that I’m really not familiar with, but I realize this is a very foolish

behavior and I am trying to break that habit. I do not feel I have to read all the

emails I get and don’t worry that other people know everything. I don’t tend to

label things as information or data, but do think I sometimes assume some things

are important without really understanding them.

M2C1-2. Describe the TRAF system. Do you use this system? What are the pros and

cons of the system? (Response: See page 111-112)

Sample Response: The TRAF system stands for Toss, Refer, Act, and File. In this

systems, one should Toss papers into wastebaskets if they are not immediately

valuable and Refer messages to other people when appropriate. Action items are

things that take longer than five minutes to do. These items should be put into an

action box or folder, added to a to-do list, prioritized, and then acted upon. We

should file documents by indicating on the document itself the file into which it

should go. It generally saves time if documents go into a “to be filed” box and

filing is done on a periodic basis, rather than every time a piece of paper comes

in that needs to be filed.

Unfortunately, I am not nearly as good at using this system as I should be,

although I think I am improving. I have set up a recycle bin next to my file cabinet

and try to throw things out when I open the mail. Sometimes, however, I tend to

hand on to things because I think I will want to look at them later.

Pros and Cons of the system – One of the best things about this system is that

encourages you to immediately Toss out things that are not truly necessary, which

can help keep papers and email messages more managable. The system is easy to

remember, but not always easy to follow. For example, it is often hard to Toss

paper because people think that they may need it later. It is also often easy to get

sidetracked while going through papers and think that something can be

accomplished in five minutes when it really takes much longer. When items are

put into the Action file, they still need to be prioritized and completed.

Information that is filed may be forgotten.



31

M2C1-3 Describe Covey’s Time Management Matrix and what it is used for.

(Response: See page 113)

Sample Response: Covey uses two dimensions to create his time management

matrix which consists of four boxes: Urgent and Important; Not Urgent and

Important; Not Important and Urgent; and Not Important and Not Urgent. This

matrix is used to prioritize action items. Things like crises and deadline-driven

projects are Important and Urgent and need to be top priorities. Things that are

Important but Not Urgent are often activities that will pay off in the long run, like

setting up a good security system to prevent theft, finding new opportunities for

growth, and building relationships. If these types of activities are not done, at

some point they are likely to become Urgent. Things that are Not Important

should be very low priority and may need to be eliminated from the manager’s to

do list. However, some things, such as meetings, may seem unimportant to the

manager but be seen as important to her/his supervisor, so just ignoring those

activities may not be politically smart.

Note: This question can be expanded by asking students to discuss whether some

of the items that Covey lists as “Not important and Not Urgent” like “pleasant

activities” might really be valuable for reducing individual stress which can

improve performance and morale.

M2C1-4. Describe the four elements of a message recommended by the OABC method.

Do these elements change based on your audience or the communication

media? If so, provide an example. If not, explain why there are no

differences. (Response: See page 114-117)

Sample Response: OABC stands for Opening, Agenda, Body, and Closing. Using

this method helps make sure that messages are easy to understand and it is clear

what the recipient needs to do. The Opening sets the tone and identifies the

sender. The Agenda outlines the message. This is especially important when

messages contain multiple issues. The Body should be concrete, simple, and

concise. Don’t overwhelm the reader with details! The Closing reminds the

person what you want them do to (e.g., please respond by May 22) and closes the

message cordially and efficiently.

Although the basic elements do not change, the audience and communication

media may change slightly what is included. For example, in a voice mail it is

critical to state your full name in the Opening . This is generally not needed in an

email because your name is included automatically as part of the message. If you

are communicating with a close friend, you may need to do less to establish a

cordial tone at the beginning and end. For some people, you may want to include

only a single issue in a message because they tend to overlook things in longer

messages.



32

M2C1-5. What is meant by “the vanishing human moment?” According to your text,

is this is this a serious problem? Why or why not? (Response: See pages 116-

117)

Sample Response: The “vanishing human moment” refers to the fact that much

work is actually no longer done in face-to-face meetings but is mediated

electronically. The text argues that this is a serious problem because confusion

often results from electronically mediated communication. People are accustomed

to having nonverbal cues that can help convey important information. Without

those cues, we may misinterpret intentions and react negatively, creating a

negative communication spiral.

Note: This question can be modified to ask students for their opinions, rather than

to respond based on the text, which suggests that this is a serious problem. If

students are asked for their opinion, their responses should be evaluated based on

the quality of their argument (the grounds and warrants they provide), not the

particular claim that they make. This topic is a good one for seeking student

opinions because their experiences with electronically mediated communication

are generally very extensive and they may feel that face-to-face communication is

overvalued.

M2C1-6. In contrast to many personal productivity experts who advocate cleaning up

clutter, Eric Abrahamson and David Freemen suggest that there are benefits

to being moderately disorganized. What are the benefits of some degree of

clutter, according to these authors? Are their findings consistent or

inconsistent with the competing values framework? (Response: See page120)

Sample Response: Abrahamson and Freeman argue that moderately

disorganized people (and organizations) benefit from clutter in three ways: they

are more resilient, more creative, and more effective. Their findings are

consistent with the competing values framework which suggests that flexibility is

just as important as control when it comes to being effective.

M2C2: Working and Managing Across Functions

M2C2-1. Assume you have been assigned to manage a cross-functional team. What are

eight guidelines that can help you make sure you and your team are

successful? (Response: See pages124-126)

Note: Students can be asked for fewer guidelines or can be asked to explain

guidelines in more detail, rather than just listing them.

Sample Response: 1. Clarify goals and charter and get team buy-in. 2. Seek to

create a critical mass of leadership. 3. Hold the team and its members



33

accountable for performance. 4. Keep cross-functional teams as small as possible

with critical functional representatives. 5. Provide the cross-functional team with

constantly updated and relevant information. 6. Train members in teamwork and

process management. 7. Clarify expectations within and between teams. 8.

Encourage team members to be willing to step out of their role.

M2C2-2. What is the general purpose of cross-functional teams? When are cross-

functional teams appropriate? Identify an issue in your workplace which

could be addressed by a cross-functional work team. Who would be on the

team and why? (Response: See pages 121-126)

Note: Students should identify a specific issue from their workplace and why it

should be addressed by a cross-functional work team. Given their own knowledge

of the organization and the specific issue to be addressed by the team, students

should clearly identify and justify the different functional areas that need to be

represented on the team. In classes where students are not working full time,

students may struggle to come up with an appropriate issue because of their

limited knowledge of the workplace.

Sample Response: In general, cross-functional teams are used to break

boundaries between different functional areas without disrupting the existing

organizational structure. The teams are often formed to respond quickly to

competitive pressures. In my workplace, a cross-functional team could be used to

address the problem of poor production timing. Customers often want products

months before they are available, so we lose sales when we cannot provide those

products. This cross-functional team definitely would need to include

representatives from manufacturing and sales. We might also need to include

someone from finance because changing production timing might require

additional capital expenditures to meet capacity demands.

M2C2-3. Explain the concept of “lift.” Identify the four conditions required to create

lift and the action imperatives that relate to those characteristics. Why is it

important to try to create “lift” when managing cross-functional teams?

(Response: See page 126)

Sample Response: “Lift” is the idea that an individual can have an uplifting,

energizing effect on themselves and on others if that individual is (1) purpose-

centered, consistent with the Compete action imperative; (2) internally-directed,

consistent with the Control action imperative; (3) other focused, consistent with

the Collaborate action imperative; and (4) externally open, consistent with the

Create action imperative. Lift is important when managing cross-functional teams

because it helps provide the energy needed for the team to be effective.



34

M2C3: Planning and Coordinating Projects

M2C3-1. Why has project-based work become so common in organizations today?

What are the problems associated with project-based work? Is project-based

work just a fad? Justify your answer. (Response: See page 130

Sample Response: Project-based work has become much more common in

organizations because it provides more flexibility and can result in improved

performance. Changes in the economy, heightened competition, increased

complexity in organizational environments, and rapid technological changes have

all been forces for using more project based work. Project-based work can be

highly focused, can take advantage of cross-functional teams, and can improve the

utilization of resources by facilitating the “borrowing” of resources from within

and outside the organization.

No, project-based work is not just a fad. Evidence to support the continued

importance of project-based work can be found in the forces that are driving

change in the external environment: increasing complexity, technological

advances, and a growing number of competitors from around the globe. These

force are unlikely to go away, therefore organizations will continue to seek more

flexibility to move in new directions quickly. Although there will always be tensions

when using project-based work, improved project planning and monitoring tools

will help reduce problems and the opportunities that arise from project-based work

outweigh the costs.

M2C3-2. Describe the activities and tools used in project planning and monitoring.

[Provide examples of the activities and tools used to plan and monitor a

project based on a project you have worked on recently at work or school. If

there were some activities or tools that you did not use, explain why they

were not used. Based on your experience, do you think the project outcome

would have been better if you had used those tools? Why or why not?]

(Response: See pages 130-143)

Sample Response: Project planning includes defining work requirements,

defining work quality, and defining resources needed. Project monitoring

includes tracking progress, comparing actual to predicted, analyzing the impact,

and making adjustments. A statement of work is a written description of the scope

of work required to complete the project. A work breakdown structure shows the

total project divided into components that can be measured in terms of time and

cost.

Note: Asking students to describe a personal experience with a project, is a good

way to test understanding, but introduces some important issues from the

perspective of grading. Because a student may not have used all of the tools

described in the text, asking for the activities and tools specifically, in addition to

asking for a description of their experience, can help with consistency for grading



35

purposes. Asking students to explain why they did not use tools and discuss

whether those tools would have been helpful can also ensure that all students

realize that they need to demonstrate an understanding of planning and

monitoring tools and activities, whether or not they used them in their project.

M2C3-3. What is a PERT/CPM model? [How could a PERT/CPM model be used to

manage a project with which you are currently involved? Describe the first

five tasks to be done and then draw a PERT diagram for those tasks.]

(Response: See pages 135-137)

Sample Response: A PERT/CPM model allows the project manager to see the

flow of tasks associated with a project by showing the interrelationships between

activities. This allows the manager to estimate the necessary to complete the

overall project and to identify critical points where a delay in the completion of a

particular task will cause the overall project to be delayed.

Note: As noted above, asking students to describe a personal experience with a

project, is a good way to test understanding, but introduces some important issues

from the perspective of grading. If students are asked to describe a specific

project (from work, school, community life) and develop a PERT/CPM model to

manage the project, it is helpful to give them a specific number (e.g., five) of tasks

to include.. Otherwise some students may spend too much time on this question

because they are working on a much more detailed project than other students. If

given a specified number of tasks, students should list and number each task. A

simple diagram with five nodes should be drawn that shows the amount of time

for each task and reflects appropriate predecessor activities.

M2C3-4. Explain the concept of resource leveling and why it is helpful to project

managers. (Response: See pages 137-138)

Sample Response: Resource leveling refers to efforts to schedule work on non-

critical activities so that resource requirements on peak days will be reduced.

Resource leveling requires that managers have PERT/CPM diagrams and

information about float so they can move the start dates of activities without

affecting the critical path. For complex tasks, resource leveling is done using

computer programs. Project managers can save time and money if they are able

to allocate resources across time based on slack periods, rather than having to

pay overtime or rent additional equipment during peak times .

M2C3-5. What is a Gantt Chart? [How could a Gantt chart be used to manage a

project with which you are currently involved? Create a Gantt chart showing

the first five activities for that project.] (Response: See pages 138-140)

Sample Response: A Gantt chart is used to visually display project activities

across time. Activities/tasks from the work breakdown structure are listed



36

sequentially on the vertical axis and time is shown on the horizontal axis. For

each activity, a bar is drawn showing the time commitment.

Note: As noted above, asking students to describe a personal experience with a

project is a good way to test understanding, but introduces some important issues

from the perspective of grading. If students are asked to describe a specific

project (from work, school, community life) and develop a Gantt chart for the

project, it is helpful to give them a specific number of activities (e.g., five) to

include.

M2C3-6. What are the four primary resources that need to be monitored over the

course of a project? What tools can project managers use to monitor these

resources? (Response: See pages 141-143)

Sample Response: Resources that project managers need to monitor include time,

money, people, and materials. Gantt charts can be used as project monitoring

tools. A standard Gantt chart can be used to monitor time on the project versus

time budgeted. Similarly, specialized Gantt charts showing personnel task

assignments can be used to monitor the availability of people and how much time

individuals have spent on a project. A Bar Chart Cost schedule is a specialized

Gantt chart that shows projected costs; actual costs can be added to this chart for

monitoring purposes. In addition to Gantt charts, cost/schedule integration

graphs, and variance calculations are also tools managers can used to monitor

resources, for example, money spent versus money budgeted.

M2C4: Measuring and Monitoring Performance and Quality

M2C4-1. Discuss why organizations fail to monitor the right processes and outcomes.

Has this become less of a problem since 1975 when Steven Kerr wrote his

classic article on this topic? Justify your conclusion. (Response: See page

t147-148)

Sample Response: A major factor in the failure of organizations to monitor the

right processes and outcomes is due to inappropriate performance measures

being used as incentives for employees. Kerr identified three different reasons for

using measures that do not actually relate to efficiency in achieving

organizational goals. First, sometimes performance measures are selected

because they are “easy” to observe (highly visible) and appear to be “objective”

because they can be easily counted/quantified. For example, it is easier to

measure how long a call center employee is on the phone than to measure the

quality of customer service provided. Second, sometimes hypocrisy plays a role –

the stated organizational goals are not actually the true goals. This would seem to

be the case with insurance companies that sell policies by stating the company

goal is to help customers who suffer from financial losses but reward employees

for NOT paying claims. Finally, Kerr notes that sometimes reward systems are



37

designed to emphasize something other than efficiency, such as morality or equity

or even seniority. An example of this might be a company that pays people based

on their years of service, rather than on their actual contribution to the

organization.

Despite the fact the Kerr’s article has been widely read and the basic concepts he

discusses are well-understood, organizations still fail to monitor the right

processes and outcomes. Evidence for this conclusion can be found in the many

recent organizational scandals and failures, including the financial crisis that

was rooted partly in the failure of lenders to properly evaluate the credit-

worthiness of borrowers.

Note: Students may provide other examples based on in-class discussion or recent

news stories. For example, the major BP oil spill in the Gulf of Mexico led to the

discovery that “Minerals Management Service officials, who can receive cash

bonuses in the thousands of dollars based in large part on meeting federal

deadlines for leasing offshore oil and gas exploration, frequently changed

documents and bypassed legal requirements aimed at protecting the marine

environment, the documents show.” (Washington Post, May 24, 2010).

M2C4-2. Identify and explain the three characteristics of measures that are important

for understanding how useful a measure is? For each characteristic, provide

an example based on how you are evaluated at work or at school. Which

characteristic is most important from the manager’s perspective? (Response:

See pages 148-149)

Sample Response: Measures can classified based on their objectivity

completeness, and responsiveness Objective measures can be verified

independently, in contrast to subjective measures that are dependent on personal

judgment. For example, attendance is an objective measure; quality of class

contribution is much more subjective. Completeness refers to how much of the

desired performance is captured by a particular measure. For example, when

testing to see if a student has mastered all the material covered during a semester,

a short exam that asks questions about only a few of the topics covered would be

less complete measure than a longer exam that included questions on every topic

covered. Responsiveness relates to the question of the extent to which the

manager can act to influence the measure directly. For example, stock price is

related to employee behavior, but often quite indirectly and there are other

factors such as interest rates and investor sentiments that also have an impact on

stock price Responsiveness is the most important from the manager’s perspective

because it gauges the extent to which the manager can act to influence the

measure. For example, measuring customer satisfaction with employee service

and discovering that customers did not think a salesperson was well informed

about product features provides information that a manager can use to identify

specific training the employee needs.



38

M2C4-3. Compare and contrast the Balanced Scorecard approach to evaluating

organizational performance to the four quadrants of the competing values

framework. How do these approaches differ from more traditional methods

for measuring organizational performance. Which approach would you

recommend – the traditional, the balanced scorecard, or the competing

values framework? Justify your answer. (Response: See page 150)

Sample Response: Traditional approaches to measuring organizational

performance relied primarily on financial results. The balanced scorecard

approach added customer, internal business, and innovation perspectives to the

financial perspective. The competing values framework includes all of the

perspectives in the balanced scorecard, but the human relations (collaborate)

quadrant also emphasizes the employee perspective. Of the three, the competing

values framework is the most complete. In addition, many financial measures are

less responsive than measures associated with employees and customers, so that

is another reason to prefer to competing values framework.

Note: Students who select either the balanced scorecard or traditional financial

approaches would need to justify their answers based on the costs associated with

gathering measures for all four quadrants of the competing values framework.

With respect to grading, it is often helpful to assign some points to answering the

recommendation question, regardless of the choice, and some points to the quality

of the argument supporting that recommendation. This reduces the perception

that the instructor is forcing students to agree with her/him and focuses attention

on the importance of articulating a justification for recommendations.

M2C4-4. Discuss the benefits and costs of using a system such as the Baldrige Criteria

for measuring organizational performance. [Do you think that certain types

of organizations might be more likely to benefit from using the Baldrige

criteria than others? Why or why not?] (Response: See pages152-153)

Sample Response: Systems such as the Baldrige Criteria can be helpful for

identifying areas for improvement, they can also be time consuming and

cumbersome to implement. For example, the Analysis for the measuring

performance and quality competency included only a small fraction of the

Criteria but still included a number of different questions and issues that needed

to be addressed. Some research has linked winning a Baldrige award to positive

stock performance, although the most recent data on this relationship has not

replicated earlier findings.

Note: The bracketed question about different types of companies using the

Baldrige Criteria goes beyond the material in the text and would be appropriate

for more advanced classes. Students might approach this question in different

ways. For example, students might note that in industries where there are specific

criteria, such as health care, using the Baldrige criteria might be more important



39

than for companies that are less specialized. Students might also suggest that only

companies that think they have a chance of winning a Baldrige award should use

the criteria because they would be able to use the award for advertising. For

grading purposes, points should be primarily based on the quality of the

argument, not the student’s conclusion. To help students recognize that this has

been done, allocating some points to the decision, regardless of what it is can be

very helpful.

M2C5: Encouraging and Enabling Compliance

M2C5-1. Explain the two basic types of variables that influence compliance. Give an

example based on your own behavior of how each type of variable influenced

your behavior. Which type of variables do managers have more control

over? Does that mean that they can ignore the other type of variables?

(Response: See pages157-158)

Sample Response: Compliance is influenced by both situational-level variables and

individual-level variables. Situational-level variables relate to the particular

circumstances at a given time. For example, are we in a home, park, or house of

worship? Are we here for a meal or a wedding? These types of situational variables

can influence behavior because there are certain norms associated with particular

situations and many people tend to comply with those norms. Individual-level

variables relate to things about a particular person such as their age, education,

background, personality, etc. These characteristics can also influence behavior.

Managers have more influence over situational variables. Although they are less

able to change individual-characteristics, that does NOT mean that they can ignore

individual-level variables. Because behavior results from the combination of both

situational- and individual-level variables, managers need to understand both the

characteristics of the situation and the characteristics of the individual in their

efforts to predict and motivate employee behavior.

M2C5-2. Discuss five [or specify a smaller number] different reasons why employees

engage in noncompliance in the workplace. (Response: See pages158-161)

Sample Response: Employees may not comply because they didn’t know they

should. Lack of knowledge can be due to lack of information or ambiguity about job

requirements. Sometimes, employees are not sure what they should do. They may

have some information, but there is some ambiguity about what is required or who

is required to do it. This is especially common where there is peer pressure to

violate a rule or where companies send mixed messages by not responding or

responding inconsistently to violations of rules. Employees sometimes feel

obligated to look out for themselves, and thus when incentives are not aligned with

the desired behavior, misbehavior is more likely to result. When management is

seen as being untrusting of employees or unworthy of being trusted by employees,

employees are also likely to engage in noncompliance or even negative behaviors

like sabotage. Finally, sometimes noncompliance occurs when employees sincerely



40

believe that complying would be harmful to the organization or to society, as can be

seen in situations with organizational whistleblowers.

Note: This question can be revised to ask specifically for the “triggers” identified

by Litzky et atl (2006) or the “explanations” used as categories in the text. Asking

the question in a more generalized way give students the chance to use either

approach or a combination of both approaches while still demonstrating a mastery

of the key concepts.

M2C5-3. Compare and contrast the six (or some smaller number) basic compliance

strategies that managers can use. Which of these strategies would you be

most likely to use? Least likely? Why? (Response: See pages 161-163)

Sample Response: The six compliance strategies are punitive (using sticks),

remunerative (offering carrots), preventative (putting up hurdles), generative

(creating fast tracks), cognitive (enlightening employees about their self interest),

and normative (converting employees). Punitive and preventative strategies are

negatively focused. In contrast, remunerative, generative, cognitive, and normative

strategies are all more positively focused. The first five strategies are all similarly

because they are based on ideas about self interest. In contrast, normative

strategies are less clearly self focused and appear to be based more on a broader

notion of what is right or good for the group/organization/society.

As a manager, I would be most likely to use a combination of enlightenment and

fast tracks. Helping people understand what is in their self-interest is a low-cost

method for increasing compliance. While generative strategies that make it easier

to comply may be somewhat more costly, once in place, that cost should be

eliminated or substantially reduced. In contrast, offering carrots for compliance

can become very expensive. Both sticks and hurdles tend to result in lower morale,

so I would tend to avoid these is possible. I would probably be least likely, however,

to try to use normative/conversion strategies because these tend to require a long

term commitment and may require more charisma on the part of the manager than

I think I have.

Note: As with the previous question, our concern is less with the particular

language students use than with their understanding of the basic concepts.

Therefore, we would award a student who identifies one strategy as “offering

rewards” the same number of points for that part of the answer as another student

who uses the label “remunerative” or “offering carrots.” Similarly, for the second

part of the question, the focus should be on the reasoning provided by the student,

rather than the specific choices made. Points can also be awarded for recognizing

that using a combination of strategies is often more effective than using a single

strategy.

M2C5-4. Describe four different costs associated with compliance strategies. As a

manager, how could you minimize these costs? (Response: See pages163-165)



41

Sample Response: Most compliance strategies have some direct costs. They may

require the payment of incentives (carrots) to employees or they may require the

installation of expensive monitoring systems to ensure that punishments can be

given for failures to comply. Beyond direct financial costs, compliance strategies

often cause employees to feel that management does not trust them which, in turn,

may cause employees to “live down to” that expectation. Even remuneration

through incentives can become a problem over time as employees begin to see

those rewards as an entitlement and cease to be motivated by them. A third type of

cost associated with compliance strategies is that by controlling employee

behavior, opportunities that would have been discovered under a more flexible

system are missed. Employees may become so accustomed to following the rules

that they fail to notice when those rules are no longer effective. Finally, in some

cases, compliance strategies can lead to destructive deviance because employees

feel that they have been unfairly treated. For example, having video cameras in the

locker room may cause people to feel their privacy has been violated, so they may

act out against the organization. Some employees may see surveillance cameras as

a challenge, and actually be encouraged to try to steal organizational resources

without detection.

M2C5-5. Discuss the purpose, history, and impact of the U.S. Federal Sentencing

Guidelines for Organizations (the guidelines or USFSGO). (Response: See

pages 165-167)

Sample Response: The original purpose of the USFSGO was to reduce

inconsistencies in how different organizations were treated when they violated the

law and to reduce organizational wrongdoing by using multiple strategies to

encourage voluntary compliance with the law. First issued in 1991, the guidelines

were originally created as a manual for judges. There was evidence of some

positive impact of the original guidelines, but many corporate crimes continued to

be uncovered. In 2004, the guidelines were revised and expanded. The revision

provided information about what constituted a meaningful compliance program in

order for an organization to qualify for reduced punishment, in the event that the

organization was found guilty of criminal activity. More accountability was also

put on corporate boards and top executives and specific responsibilities were

identified as being required for a meaningful compliance program. The 2004

revision also expanded the scope of the guidelines to emphasize the idea of having

an ethical organizational culture. The guidelines have provided new jobs in the

area of compliance, but the impact of the guidelines has been, by most measures,

mixed. While some improvements have been made, corporate crimes continue to be

discovered, as we learned during the aftermath of the global financial crisis.

Note: Although many students might respond to the question “Discuss the U.S.

Federal Sentencing Guidelines for Organizations” by including the purpose,

history, and impact, not all students will. Specifying what to include in the



42

question can reduce questions about grading after the exam. A simpler question

could focus on just the purpose of the Guidelines.

M2C5-6. Explain the six (or a smaller number) key criteria for effective compliance

and ethics programs according to the Overview of the Organizational

Guidelines. (Response: See page 167)

Sample Response:. (1) Oversight is required by high-level personnel; top

executives must be actively involved in the compliance and ethics program. (2)

Due care must be used when delegating substantial discretionary authority. For

example, background checks might be used to determine if someone who has access

to large amounts of cash has any prior convictions for embezzlement. (3) Effective

communication to all levels of employees is required to ensure that everyone knows

the rules and understands that they are expected to follow those rules. (4) A system

for monitoring and auditing compliance must be in place and there must be a

method for employees to report wrongdoing without being afraid that they will be

punished. (5) Compliance standards must be consistently enforced and must

include disciplinary mechanisms. (6) Once a violation has been detected, steps must

be taken to reduce the chances that similar offences will occur in the future.

Note: As an alternative to listing these criteria, students could be asked to link

some of the criteria to the different triggers for noncompliance and/or the six

compliance strategies. For example:

Key Criteria for Effective

Compliance and Ethics

Programs

Related Triggers for

Noncompliance and/or

Compliance Strategy

(3) Effective

communication to all levels

of employees

This would reduce ambiguity about

job performance, making it harder

for employees to claim they did not

know or were not sure what to do.

(5) Consistent enforcement

and compliance standards

including disciplinary

mechanism

This would avoids sending mixed

messages which can trigger

noncompliance. Disciplinary

measures would be a punitive

strategy.

(6) Reasonable steps to

respond to and prevent

further similar offences

upon detection of a

violation

Responding to violations could be a

punitive strategy. Preventing future

violations sounds most like a

preventative strategy, but would not

necessarily preclude the use of

other strategies.

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